OVERVIEW In our view, the incumbent South African government will ensure broad, largely pragmatic, policy continuity, and tensions in the mining sector have reduced. Nevertheless, GDP growth remains lackluster, current account deficits are relatively high, general government debt sizable, and portfolio flows volatile. We are affirming our long- and short-term foreign currency sovereign credit ratings on South Africa at 'BBB/A-2'. The outlook remains negative, reflecting our view that recent lackluster economic performance, labor tensions, external imbalances, and reliance on foreign portfolio flows could affect South Africa's economy beyond our current expectations. RATING ACTION On Dec. 20, 2013, Standard&Poor's Ratings Services affirmed its long- and short-term foreign currency sovereign credit ratings on the Republic of South Africa at 'BBB/A-2'.
